MovieClips to boost download revenue

New start-up has licensed short clips from movies that are then streamed on its website. The site is designed to entice consumers into paying for the full-length movie after enjoying a short excerpt for free.

The company has secured around 1,400 films and 15,000 clips from various Hollywood studios on its site. The studios get a revenue share on advertising on the films. The site also gets affiliate revenue from DVDs that people purchase through links to sites such as

The MovieClips venture is backed by $3 million in financing from First Round Capital, Shasta Ventures and angel investors.

“You come to MovieClips and you get curated and easier-to-find clips and we give you all the tools to embed it (on other sites),” said co-founder Zach James, a former Credit Suisse Group investment banker. “And the quality is much better. Our theory is if you give consumers legal alternatives they will choose the legal alternative over piracy.”

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